Nvidia (NASDAQ:NVDA) stock recovered Wednesday’s losses, which had been triggered by reports of a potential ban on its artificial intelligence chips by China’s internet regulator.
CEO Jensen Huang directly addressed fresh challenges to the company’s China business after reports surfaced that Beijing had banned its artificial intelligence chips, CNBC reported on Thursday.
Huang voiced disappointment over China’s reported ban, noting the company has long contributed significantly to China’s tech industry.
Also Read: Nvidia’s China Chip Boom Faces Threat As Beijing Pushes For Homegrown AI
The Financial Times reported Wednesday that the Cyberspace Administration of China ordered companies including ByteDance and Alibaba (NYSE:BABA) to stop buying Nvidia’s RTX Pro 6000D, chip tailor-made for the Chinese market.
Nvidia’s operations in China have faced repeated disruptions. The U.S. government has already restricted exports of high-end AI chips, including the H100, A100, and later the downgraded H20, citing national security concerns.
In August, President Donald Trump and Huang struck a deal allowing Nvidia to secure export licenses in exchange for funneling 15% of Chinese H20 sales to the U.S. government. Despite that arrangement, Nvidia guided analysts to exclude China from financial forecasts.
Earlier this week that China’s State Administration for Market Regulation launched an antitrust probe into Nvidia’s $6.9 billion acquisition of Mellanox, an Israeli data center networking company acquired in 2020. For context, Nvidia generates about 20–25% of its revenue from China.
Meanwhile, Nvidia continued to remain buoyed by the AI frenzy. On Tuesday, Huang announced an 11 billion pounds ($15 billion) investment into U.K. AI infrastructure joining other U.S. hyperscalars during President Trump’s state visit.
Price Action: At last check Thursday, NVDA stock were trading higher by 2.97% to $175.35 premarket.
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